Sep
3
CNA Gains Access to RSA Global Distribution Network
Filed Under Insurance Company, USA Health Insurance | Leave a Comment
CNA insurance company has recently entered into an agreement with RSA, formerly known as Royal & SunAlliance, to provide companies based in the US with access to the global distribution network of RSA. Through this agreement, CNA will be able to expand its reach to India, South Africa, Australia and a good number of countries in Latin America. This new agreement with RSA does not discontinue the current 16-year alliance that CNA has with Assicurazioni Generali.
Some of the Latin American countries where RSA has presence include: Argentina, Brazil, Chile, Colombia, Mexico and Uruguay. In addition of Argentina, Brazil, Colombia and Mexico, the presence of Generali in Latin America also covers: Ecuador, Guatemala, Martinique and Panama.
The branch offices of CNA based in the USA will now be able to offer international policies in 142 key countries worldwide, thanks to the combined international relationships with RSA and Generali. In addition to this, agents doing business with CNA will gain access to the full range of their products including Small Business, Professional, Technology and Excess & Surplus, complemented with quality Risk Control and Claim expertise.
In the words of Michael Dower, CNA’s vice president of Underwriting – International, “RSA has one of the largest networks in the insurance industry, including a presence in 34 countries and the capacity to cover risks in an additional 98 countries. This agreement enables CNA to expand its global reach to serve the international business needs of our U.S. producers and customers.”
Insurance Companies mentioned:
CNA has been serving businesses and professionals since 1897, and is the seventh largest commercial insurance writer and the 13th largest property and casualty company in the US. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration.
RSA has a proud heritage dating back almost 300 years. The current company structure was created in 1996 following the merger of two of the largest insurance companies in the UK, Royal Insurance and Sun Alliance. In 2008 the company shortened their name to RSA and simplified and refreshed their corporate brand. RSA has over 20 million customers worldwide. The Group currently manages GBP 14.3 billion of investments. RSA is a member of the FTSE4Good Index. RSA employs around 21,000 people worldwide.
The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is a leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group’s Parent and principal operating Company. Generali is one of the leading global players in the assistance sector thanks to the Europ Assistance Group, active in more than 200 countries with services in the motor, travel, healthcare, home and family sectors. In recent years, the Group has made a significant return to 14 central-eastern European markets and has set up offices in the principal markets of the Far East, including China and India.
Sep
2
Discovery Acquisition of Standard Life Healthcare Approved
Filed Under Health Insurance, Insurance Company, Medical Insurance, United Kingdom | 1 Comment
After having received approval from Britain’s Financial Services Authority and the South African Reserve Bank, the acquisition of Standard Life’s health insurance division, Standard Life Healthcare, by Discovery Holdings has been completed, putting PruHealth in a strong position for growth.
The finalized acquisition and integration of the companies over the next few months will make PruHealth a competitor of scale in the UK private medical insurance market, growing the number of people covered up to 700,000 and boosting market share up to 11 percent. The additional business makes PruHealth the fourth largest private medical insurer in the UK.
The integration of the two companies will take some months, and when it arrives it will see a suite of private medical insurance products based upon the best aspects of currently available insurance policies from PruHealth and Standard Life Healthcare. The new product suite is expected to be ready by the end of 2010, but in the mean time PruHealth will continue to service and sell all products from both PruHealth’s and Standard Life Healthcare’s ranges.
While the integration and new product suite is being arranged, there will be no changes to broker arrangements, customer service, existing policies and account management and sales support for products offered by PruHealth and those previous offered by Standard Life Healthcare. If there are any planned changes to a customer’s policy, they will be notified when the policy is up for renewal.
In the transitional period previous Standard Life Healthcare policies will be referred to under a new brand as ‘PruHealth Previously Standard Life Healthcare’, in order to ensure the integration is done smoothly.
The previous Chief Executive Officer of Discovery Health, Neville Koopowitz, has been appointed as the new CEO of PruHealth. Mr. Koopowitz said that “We are proud to be able to bring to clients both the award-winning product innovation and the excellent service history of two leading PMI businesses, and are excited about the opportunity to further develop our presence in the UK market. We are working hard to bring clients a new product suite, building on PruHealth’s wellness expertise and Standard Life Healthcare’s emphasis on outstanding service and comprehensive coverage.”
Insurance Companies Mentioned:
Discovery Holdings
Discovery is a financial services provider based in Johannesburg, South Africa, and was founded in 1992. Discovery offers health and life insurance in different markets as well as investment services and credit cards. They also have a joint venture life and health insurance companies with Prudential called PruHealth and PruProtect, which are structured under the PruProtection banner.
Standard Life plc.
Standard Life was established in 1825 and headquartered in Edinburgh, Scotland. Since its beginnings, Standard Life has expanded into a financial services company offering pensions, life assurance, and investment management to over 6.5 million customers around the globe.
PruHealth
PruHealth is part of a joint venture named Prudential Health Holdings Limited, between Prudential Assurance Company of the UK and Discovery Holdings. The joint venture was started in 2004 and offers private medical insurance in the United Kingdom. Currently Discovery Holdings owns a 75 percent stake in the joint venture while Prudential Assurance holds the remaining 25 percent.
Sep
1
China Life Aims to Expand Bancassurance Channel
Filed Under China, China insurance, Insurance Company, Life Insurance | 6 Comments
China Life Insurance Company Limited (China Life), the largest life insurance company in China by premium, has started to shift its sales strategy towards the bancassurance distribution channels. As a first for the company, the bancassurance channel has contributed more than 70% of the company’s insurance premiums for the first half of 2010, becoming a vital premium generator for the company.
Known for having the biggest insurance sales team in the country, China Life has been experiencing growth in the contributions from their bancassurance channel, as per a statement recently released in an interview with Wan Feng, president of this Beijing-based insurance company.
The term ‘bancassurance’ is often used to refer to the Bank Insurance Model (‘BIM’), which describes the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank’s sales channels, including branch offices, in order to sell insurance products. Bancassurance allows the insurance company to maintain smaller direct sales teams as their products are marketed and sold through the bank to customers by bank staff. Replacing the role of an insurance salesperson, bank staff and tellers become the point of sale and contact for the customer. Bank staff are advised and supported by the insurance company through product information, marketing campaigns and sales training.
By the end of June of this year, China Life had approximately 42,700 consumer and wealth management officers assigned to their bancassurance channel, spread over 97,000 branch outlets throughout the country.
China Life intends to accelerate its business expansion during the second half of 2010, to cement its footing in the most populous insurance market in the world, according to details also shared by Mr. Wan.
Insurance Company mentioned:
China Life Insurance Company Limited (China Life) is a People’s Republic of China-based life insurance company. The products and services include individual life insurance, group life insurance, accident and health insurance. The Company operates in four business segments: individual life insurance business, group life insurance business, short-term insurance business, and corporate and other business.
Aug
31
Allianz Group Profit Up 22% for Year to Date
Filed Under Allianz, Insurance Company, United Kingdom | 1 Comment
Allianz Group, the German insurer, has reported a profit of US$4.95 billion (EUR 3.9 billion) for the first-half of 2010, equivalent to a 22% increase over the same period last year. Revenues during the first half of 2010 increased to US$71 billion (EUR 56 billion) from US$63.4 billion (EUR 49.9 billion) during the same period in 2009.
In terms of net income, the corresponding increase achieved by Allianz during the same period year-on-year was 39.5% to US$3.43 billion (EUR 2.7 billion) from US$2.4 billion (EUR 1.9 billion).
Gross written premiums for property and casualty insurance cover increased a 2% year-on-year to US$30.35 billion (EUR 23.9 billion) from US$29.7 billion (EUR 23.4 billion) achieved in the first half of 2009, with the corresponding operating profit amounting to US$2.36 billion (EUR 1.86 billion).
Allianz recorded second-quarter (Q2) of 2010 revenues in the United Kingdom of US$671 million (EUR 528 million), compared to Q2 2009 revenues of US$624 million (EUR 491 million); driven mainly by an increase in policy count in their commercial insurance lines and their new corporate partnerships in the Automotive, Retail and Financial Services industries. Allianz in the UK delivers tailored insurance solutions to these corporate partners and provides a wide range of market-leading general insurance products to companies, brokers and consumers.
The statement released by Michael Diekmann, Chief Executive Officer of Allianz SE, the holding company of Allianz Group, explained: “In a first half-year marked by exceptionally high natural catastrophe losses, our success shows that our diversified approach across business segments and regions is helping us to ensure stable results. In addition, our strong capitalization and conservative capital management underline the reliability for which Allianz is renowned.”
Insurance Company mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Aug
30
Ping An Achieves Bumper Profits in the First Half of 2010
Filed Under China, Insurance Company | Leave a Comment
Ping An Insurance, the second largest insurer in the world, achieved a 27.9 percent increase in net profit in the first half of the year, reaching US1.65 billion (EUR 1.3 billion), attributing it to a steady growth in sales of insurance products and banking services.
The gross written premiums reported for the first half of the year reached US$15.4 million (EUR 12.1 million), representing approximately 15.8 percent of the total written premiums in China during that period.
After acquiring a 30 percent stake in Shenzhen Development Bank, combined with their efforts to promote their own banking services, Ping An Insurance reported profits from its banking unit to the tune of US$182 million (EUR 143 million), compared to the US$95.5 million (EUR 75 million) reported a year earlier, equivalent to an almost one hundred percent increase year-on-year.
Financial analysts had estimated that Ping An Insurance would achieve a Q2 net profit of US$529.4 million (EUR 415.8 million), when it actually achieved a net profit of US$744 million (EUR 584.5 million), beating estimates by a nearly 41 percent.
Despite the low penetration level of insurance in China, which is among the lowest in the world, Ping an Insurance continues moving towards becoming a major bancassurance distributor, combining its banking unit with Shenzhen Development Bank, aiming to get a larger share of the vibrant financial products market.
Looking forward to the second half of 2010, Ping An anticipates a slowdown caused by the Chinese government’s efforts to reign in their racing economy, compounded by volatility in the stock market and the overall uncertain outlook of the world economy.
Insurance Company mentioned:
Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company’s subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others.
Aug
30
MetLife Gets Approval for ALICO, DelAm Takeover
Filed Under AIG, Insurance Company, Life Insurance, MetLife | 3 Comments
The European Commission has given its approval for MetLife’s purchase of AIG subsidiaries American Life Insurance Company (ALICO) and Delaware American Life Insurance Company (DelAm), as part of MetLife’s takeover of AIG’s international life insurance business.
MetLife’s purchase of ALICO and associated subsidiaries was agreed upon early in 2010, and the company recently obtained approval to purchase ALICO’s Hungary-based subsidiary, AHICO, from Hungary’s financial markets regulator, PSzÁF, in the beginning of August, 2010.
The European Commission was looking at whether or not MetLife’s takeover of the two companies, ALICO and DelAm, would negatively impact competition in European markets. DelAm is part of AIG’s international life insurance operations. The purchase of DelAm, which provides wealth management services, retirement planning, life insurance and health insurance to individuals as well as commercial and institutional clients was considered not to pose any concerns, especially considering it does not provide services in the EU.
ALICO, which provides life insurance, retirement planning, wealth management, accident insurance and health insurance to individual customers and corporate clients, was found to have some overlap in activities with MetLife by the commission. MetLife and ALICO did overlap in some life insurance products in a few EU Member markets, however the combined market share of MetLife and ALICO in these markets would still be relatively small and the combined company would still face strong competition from other credible companies in the marketplace.
After MetLife’s acquisition of ALICO, it is expected that MetLife will be in a top-five position in many emerging markets, including those in central and eastern Europe, Latin America and the Middle East. MetLife is hoping to wrap up the deal with AIG by the end of 2010.
Insurance Companies Mentioned:
AIG
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
ALICO
The American Life Insurance Company, generally known as Alico, provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With a wide range of products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients. Their products include; health insurance, life insurance, savings plans, accident insurance, retirement planning and travel insurance among others.
DelAm
Delaware American Life Insurance Company, or DelAm, participates in the accident, life and health insurance business, writing accidental death and dismemberment, group life, long term disability, dental, and medical business as part of AIG’s international life insurance sales operations. It was incorporated in 1964 and is based in Houston, Texas; it is a subsidiary of AIG.
MetLife Inc.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Aug
27
Bupa Expands Health Care Select Product Line
Filed Under BUPA, Health Insurance, Healthcare, Insurance Company, Medical Insurance | 3 Comments
Bupa has added Health Care Select 3 Plus (HCS3P) as a fifth choice in their Care Select insurance product line, effectively extending their Heartbeat range of plans offered to individuals in search of private medical insurance.
In the scheme of the Heartbeat Range, Health Care Select 1 delivers the most comprehensive cover, whilst Health Care Select 4 brings the lowest level of cover. Health Care Select 3 Plus fits right in between these two levels of medical cover. A specialist plan that provides medical cover for heart and cancer is also included under the Heartbeat Range.
Health Care Select 3 Plus covers the full cost of hospital charges and the fees of consultants for in-patient and day treatment, including cancer treatment. Also covered are the full cost of radiotherapy and chemotherapy, diagnostic tests and therapies for cancer treatment, as well as eligible outpatient cancer drugs. The benefits for outpatient treatment have a coverage ceiling of US$1,550 (EUR 1,220) for the combined cost of consultations, diagnostic tests, physiotherapy and other therapies.
Other benefits in this new HCS3P plan include the cost of a private ambulance up to US$93 (EUR 73) each tip, accommodation for one parent when staying with a child under 12 years of age who is receiving in-patient treatment, plus access to the Bupa health line service. Not covered under this plan are the complementary medicine and psychiatric treatments.
By removing benefits such as psychiatric treatment and limiting the outpatient coverage, this plan reduces the amount paid in the form of premiums, something that clients concerned with the cost of the plan may find reasonable, as not all clients feel that these benefits are necessary.
As a trend, the modular approach in the level of cover offered by insurance product lines, like the Heartbeat Range offered by Bupa, is gaining attention among providers of private medical insurance and other companies are coming out with their respective product offerings.
The following table summarizes the benefits offered by the Health Care Select products in the Heartbeat Range:
Insurance Company mentioned:
Bupa is an international health insurance company that provides health insurance for individuals and companies all over the world. Bupa has offices on three continents and over 7 million customers’ world wide. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world.
Aug
26
Liberty Mutual Group Expands in China Opening Zhejiang Branch
Filed Under China, China insurance, Insurance Company | 5 Comments
Liberty Mutual Group continues its expansion in China by starting branch operations in Zhejiang, after having received the approval of the China Insurance Regulatory Commission (CIRC). Liberty Insurance Company Limited (LICL) had received approval from CIRC to open the branch in Hangzhou, Zhejiang Province in December 2009.
The Chinese Province of Zhejiang has a population of more than 47 million people, and is located 700 miles to the south of Beijing. There was no foreign company operating in Zhejiang offering property and casualty insurance products, which makes Liberty Mutual the first company to penetrate this segment of the market in that part of China.
In addition to its presence in Zhejiang, Liberty Mutual has operations in Chongqing and Beijing. Through the branches at these three locations the company will offer product lines for personal insurance and a wide range of commercial insurance.
Liberty Mutual first opened a representative office in Shanghai in 1996, their expansion in China continued in January of the year 2004 when the company received the approval to open its first insurance office in Chongqing, gaining the strategic position of being the first foreign insurance company to offer property and casualty insurance products in western China.
Then on September 2007, Liberty Mutual received approval from the CIRC to have its Chongqing operation converted to a wholly-owned subsidiary, becoming Liberty Insurance Company Limited (LICL). This gave LICL the distinction of becoming the only Fortune 500 company subsidiary head-quartered in Chongqing.
The President of Liberty Mutual Group, David Long, described the achievements of the company with the following words: “Liberty Mutual’s strategy of being the first insurer to enter markets untapped by foreign companies in China continues to be successful. CIRC’s approval of our Zhejiang branch reinforces our reputation as a strong company committed to providing quality insurance in China.”
Insurance Company mentioned:
Liberty Mutual Group offers a wide range of insurance products and services, including personal automobile, homeowners, workers compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, assumed reinsurance, fire, and surety. Liberty Mutual Group employs over 45,000 people in more than 900 offices throughout the world.
Aug
25
Discovery Health in Agreement with Ping An Over Stake in Ping An Health
Filed Under China, China insurance, Health Insurance, Insurance Company, Medical Insurance | Leave a Comment
South Africa-based health insurance company, Discovery Holdings, has signed an agreement with Ping An Insurance Company to take a substantial stake in Ping An’s health insurance subsidiary, Ping An Health Insurance Company, in order to develop the Chinese health insurance market.
The agreement was signed during a trip to Beijing and Shanghai by South African government officials, including the President Jacob Zuma and 12 ministers, as well as a business delegation of over 320 South African business people. The agreement will see Discovery Holdings take an initial 20 percent stake in Ping An Health Insurance, Ping An Group’s health insurance subsidiary.
Discovery bought Standard Life’s health insurance unit in the UK earlier this year, enveloping it in its joint-venture with Prudential, PruHealth. With health insurance clients in South Africa and the UK reaching more than 2.9 million, Discovery’s experience in running health insurance businesses in both developed and developing insurance markets is seen as a large part in why Ping An picked Discovery for the partnership.
The number of upper- and middle-income households in China reaches 80-90 million, most of which are capable of affording top-up insurance to complement the Social Health Insurance system run by the government. The demand from this segment of the population for insurance products that cover private healthcare services, as well as drugs and diagnostic tests that fall outside the coverage schedule of the Social Health Insurance is increasing, and the government is encouraging health insurance companies to fulfill this need as it tries to roll out the Healthy China 2020 reforms.
Ping An Health Insurance is likely to benefit from the strengths of both Ping An Group and Discovery Holdings. Ping An Health Insurance can springboard off the back of Ping An Group’s scale, distribution network and experience in the Chinese market, while Discovery brings its array of health products, systems and processes, and data and risk management abilities to the table.
Adrian Gore, the Chief Executive Officer of Discovery Holdings said that “Ping An is an excellent partner. The Group is a leader in the Chinese insurance market, providing immediate scale, brand and distribution capability in this rapidly growing market.”
Ping An’s Chief Insurance Officer also sees a bright future ahead, adding that “Both Ping An and Discovery have a vision to fundamentally change the markets in which they operate, and provide consumers with innovative, benefit-rich products. Discovery is a global leader in consumer-engaged health care, and we are excited to have them as a partner. Through this cooperation, Discovery will also be able to share the massive distribution channel and customer base brought by Ping An.”
Insurance Companies Mentioned:
Discovery Holdings
Discovery is a financial services provider based in Johannesburg, South Africa, and was founded in 1992. Discovery offers health insurance and life insurance in different markets as well as investment services and credit cards. They also have a joint venture life and health insurance companies with Prudential called PruHealth and PruProtect, which are structured under the PruProtection banner.
Ping An Insurance Company
Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company’s subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others.
Aug
24
Swiss Life Reports Increased Earnings
Filed Under Insurance Company, Life Insurance, Switzerland | Leave a Comment
Swiss Life Group, a leading life insurance and pension provider in Switzerland, reported a 94% increase in net income for the first half of 2010. This was due to growth in premiums and newly implemented efficiency measures aimed at cutting operating costs. The revenue increase was reported in all of the major regional markets where the group operates, including Switzerland, France and Germany.
During the first half of this year the net income of Swiss Life increased to US$253.3 million (EUR 200.4 million) from US$131 million (EUR 103.6 million) for the same period in 2009. The combined amount of gross premiums, policy fees and deposits increased 20% year-on-year to US$11.5 billion (EUR 9.1 billion).
The strong performance by the company in the first half of 2010 was summarized in a statement released by Bruno Pfister, CEO of Swiss Life, by saying: “The improvements we achieved in client relations and distribution confirm that we have made sustainable progress in our pursuit of profitable growth. The measures introduced last year as part of our group-wide Milestone program have started to pay off.”
Last year, Swiss Life started the implementation of their new efficiency-enhancing policy, known as the “milestone” program, under which the company aims to increase new business within their “modern insurance and risk products” by more than 70%. The program can be considered a success for the company, as Swiss Life has achieved the 70% growth targeted by the policy – illustrated by the high returns the company experience during the first half of 2010 – in addition to reducing overall company-wide operating costs by 8%.
All that is left for Swiss Life is to realize their margin management target, which remains at 0.9%, unchanged from 2009. Analysts speculate that the target set by the company in this regard may be difficult to reach, due to the prevailing low interest-rate environment in Europe and pressure from competition across the region.
Citing low interest rates as a primary concern, Swiss Life has taken steps to limit their exposure to market risks, and have launched a new time-frame for the achievement of their margin management target – now aiming to see improvement by 2012. During the past 12 months the company has launched approximately 30 insurance products, conformed by a mixture of new and revitalized policies, and are still continuing their approach of achieving profitability before growth.
Insurance Company mentioned:
Swiss Life was founded in 1857 as Schweizerische Rentenanstalt. The Swiss Life Group is committed to openness and transparency in management and actively supports good corporate governance. Swiss Life is a leading life and pensions provider in Switzerland and it is one of the top 10 European life insurance providers. As at the end of 2009, the Swiss Life Group employed a staff of around 8200.